The Chicago Bulls and their head coach agreed on a a four-year contract extension through the 2016-17 season that will, according to Yahoo! Sports, pays him around $18 million with bonuses that could reach $20 million. A $5 million take-home would put him among the NBA's five or six highest-paid coaches.

Tom Thibodeau has a Coach of the Year award in two seasons as Chicago Bulls coach. (AP Photo)

General manager Gar Forman announced the move Monday. The Bulls had exercised the team's option for next season this past spring. The new deal takes effect after this season.

"Obviously, I'm glad we got the contract done. I'm looking forward to the challenge ahead. My expectations remain the same," Thibodeau said at the team's media day, according to the Chicago Tribune,

"I'm thankful to Jerry (Reinsdorf) and Gar and John (Paxson). I never doubted it would work out. I love being here."

Thibodeau was the NBA's Coach of the Year for the 2010-11 season and the runner-up last season, when he improved his overall record to 112-36. He joined Chicago after a successful career as an assistant coach—he won a title with the Boston Celtics in 2007-08 and was widely credited for helping that team turn into a defensive powerhouse.

"I'm biased, but I think Tom is the best coach in the NBA," Forman said. "I watch his practice every day and his attention to detail is incredible."

The Bulls tied San Antonio for the NBA's best record at 50-16 after winning a league-leading 62 games in his first year, even though they were rarely at full strength. They lost to Philadelphia in six games after losing star guard Derrick Rose in the playoff opener. He's out until at least January as he recovers from left knee surgery.